Fine, its potentially a step but its not the complete step. And that step itself carried with it and gave certain individuals the power to influence Am Yisrael and they did in a very negative way both physically and spiritually.
Why is it worse being under British occupation then being under hellinist occupation?
I think that's pretty obvious. The British were systematically exterminating us and inflating the arab population while blocking Jewish immigrants and leaving them to burn in europe. Even as bad as labor and likud zionists are, the situation is obviously not the same.
Also perhaps them making their announcement at that time prevented and hijacked the real zionism that should have been established. They usurped power from am Yisrael and crushed their opponents (like in the Altellena) and the kidnapping of Jewish Sefardic children + the spiritual kidnapping through their bolshevik education system that they established. Did it bring Am Yisrael forward or perhaps backward in many years from us reaching our goals.
And yet the same people they attacked on the Altalena supported the declaration of Independence and encouraged them time and time again to do it until B-G finally gave in and did it. Because it was a much needed escape from the galut mentality. They finally embraced Jewish sovereignty. Our self-acknowledgement of our own dominion over the land is itself an establishment of said dominion.
When you ask if it brought us forward or backwards, I'm really at a loss that you would suggest that at all. I almost feel there is no way to persuade you because this is something so self-evident and obvious that only if you fail to grasp the historical circumstances (of then, but also of now) could you possibly ask this.
If someone is celebrating labor zionists on yom haatzmaut, then they are doing it wrong. The day of independence (or as Rav Bar Hayim terms it, the day of Rebirth of Israel) is a day to celebrate God and the miracles He has given us. That is what hallel is instituted for. And labor zionists certainly don't say hallel.